Mid Term Business Plan (2021-2023) Progress Update

Diversified Products BusinessFebruary 15, 2022

Member of the Board
Global COO and Representative Executive Officer
Masahiro Higashi

Mid Term Business Plan (2021-2023) “Aggressive approach” & “Challenge”
2021
COVID-19 Impact

Stage

Gradual recovery
Crisis management

RecoveryFebruary

2022
Transformed“strong”
Bridgestone

Sustainability at the coreRebuilding earning power
Strategic growth investment■ Tire businessCore business

Rebuilding earning power: Business portfolio and manufacturing footprint restructuring, Expense and cost structure reformation
Premium business strategy: Flexible agile management, Dan-Totsu product strategy - new premium ENLITEN■ Solutions business〈2023 Target〉

Tires

Growth businessAccelerate global expansion
Expansion of Tire-centric solutions / Retail services / Mobility solutions

Exploratory business■ Start in areas where Bridgestone can leverage our core competencies: explore technology and business model
Upstream of supply chain – Guayule business/ down stream of supply chain – Recycle business,
New challenge of Diversified products business – soft robotics business

Diversified productsbusiness■ Sharply focus on areas where Bridgestone’s core competencies can be leveraged

Enablers
for execution
Core Competencies■ Reinforce foundation for financial strategy: Reinforce management structure and portfolio management■ B-HRX：Reinforce development of digital talent■ Bridgestone design “Circle Aesthetics”

2/12Solutions

Mid Term Business Plan (2021-2023) “Aggressive approach” & “Challenge”■ Implement business reforms to realize “Rebuilding earning power” by “Restructuring business portfolio”■ Recover profitability step by step, maximize synergy with Bridgestone’s core competencies
2020202120222023

Gradual recoveryCOVID-19 Impact

Crisis management

Stage

Sustainability at the coreRebuild earning power

Transformed“strong” Bridgestone

Strategic growth investment

Actual2019

2020

Revenue 572 B JPY* 510 B JPY
AOP
1.4 B JPY* 9.7 B JPY
Chemical & Industrial Products
Business:
Decline of profitability*2019 financial data has been adjusted to IFRS basis

3/12

Restructure business portfolio
Clarify “what we do” and “what we don’t”

Rebuild earning power

Expense and cost structure reformation,Premium business strategy

Mid Term Business Plan Announcement
Feb 16, 2021

2023 Revenue: 230 B JPY
AOP: 15 B JPY
Recover profitability
by all business

Chemical & Industrial Products BusinessSports & Cycle Business
Diversified Business in Americas

Global manufacturing footprint
restructuring: 40 % reduction

Mid Term Business Plan (2021-2023) “Aggressive approach” & “Challenge”
2020

2021

2022

2023

Gradual recovery

COVID-19 Impact

Crisis management

Stage

Sustainability at the core

Transformed“strong” Bridgestone

Rebuild earning power

Strategic growth investment

 Transfer US building products business Chemical & Industrial Products Business
ActualRevenue
AOP20192020

572 B JPY*
1.4 B JPY*

510 B JPY9.7 B JPY

Restructurebusinessportfolio

 Sports & cycle business• Withdraw from tennis business⇒transfer manufacturing plant• Transfer of Bridgestone Sports Arena Corporation

Chemical & Industrial Products
Business:
Decline of profitability*2019 financial data has been adjusted to IFRS basis

Present earnings announcement
Continuedbusiness

2021

2022(forecast)

Revenue 243 B JPY
10.2B JPY
AOP

260 B JPY
14 B JPY

Restructure 46 locations, 60% of footprint

2021: recovered profitability
by all business

Integrate tire and DP development“Forming hybrid polymer”＝ common technology base2022 AOP: close to 2023 levelof 21MBP(incl. transferred locations)Rebuildearningpower

4/12･Transfer anti-vibration rubber, chemical products
solutions business・Withdraw from conveyor belt businessDiversified Products Business history : previous “selection and focus”, “business reorganization”
Great Depression,lack of natural resources

1930

1940

Motorization, high economic growth,
reduce oil dependence

Post-war recovery,
reduce coal dependence

1950

1960

1970

LPG transport
Conveyor belt

Natural resource infra.

1980

Birth of “Kakouhin” =transformation & creativity

1990

Burst of bubble economy,
IT revolution, decarbonization

20002010

Firestone acquisition

Rubber track forAgri. machinery
Rubber track forConstr. equipment

AutomotiveBicycle

Seismic isolation
Plastic piping

Insulation material
FRP panel bath tub
Unit floor
Roof material
Public work material
U.S. roof material

Consumer goods

Anti-vibration rubber

Unit bathSolar panel film
Pure Beta (fine ceramics)

Printer roller
Mattress – chemical productsElectronic paper
Consumer goods chemical products
Automotive chemical products

Air spring (Japan)

AutomotiveMotorbike

Automotive seat foam

5/12

Tennis ball, tennis racket

Air spring (U.S.)
BicycleElectric bicycle

Bicycle (U.S.)Enter the U.S. market

Sports2020

Hydraulic, highperformance hose

Urban industry infra.

Consumer goods, automotive
industry related businesses

Digital revolution, sustainability

Continued business

Marine fender
Marine hose

Natural resource,industrial infrastructure related
businesses

Transfer, withdrawal in black

Sports arena

Golf ball
Golf club
Golf goods, apparelBusiness portfolio restructuring: Manufacturing footprint & business portfolio restructuring of Diversified Products Business■ Execute manufacturing footprint & business portfolio restructuring over a mid-long term
Mid Term Business Plan (2021-2023) - Global manufacturing footprint restructuring(incl. tire, diversified products & material manufacturing sites) : Approx. 40% reduction by 2023 from approx. 160 locations in 2019
Diversified Products Business

Withdrawal from conveyor belt business (without reduction of site)

Restructuring of production items (Iwata plant) (without reduction of site)

Tire Business

Bethune plant, France

Automotive seat pad plant (Ageo plant)
Bridgestone Cycle Co., Ltd. (Kisai Plant)

Tire Business

Bridgestone (Huizhou) Tire Co., Ltd.
（Truck and Bus tires）
Internal Manufacturing

Transfer of Advanced Chemical Products in Japan (3 sites)

Transfer of Chemical products solutions business (16 sites)

Transfer of Anti-Vibration rubber business (6 sites)

Transfer of Bridgestone Sports Arena Corporation

Bridgestone(Huizhou) Synthetic
Rubber Co., Ltd(Synthetic rubber)Diversified Products Business

Firestone Building Products Company
LLC(U.S. Building products business)(15 sites – 13 in the U.S., 2 in other regions)(without manufacturing site)

Diversified Products Business

Bridgestone Everlight (Shanghai) Co., Ltd(Polyurethane foam products)
Diversified Products Business

Diversified Products BusinessBridgestone Automotive
Products de Mexico S.A. de C.V.
(Polyurethane for automobiles)

PT Bridgestone Astra Indonesia(Automotive anti-vibration rubber)
Tire Business

Bridgestone Tecnifibre Co., Ltd (Thailand)

Port Elizabeth plant, South Africa

6/12

Restructuring of 46 Diversified Products Business locations

Business portfolio restructuring : Diversified Products Business – approach of business transfer■ Minimize the impact on customers, maintain the employment, pay and benefits of employees associatedwith the business as a base
■ Realize constant growth of employees, continue and reinforce the business by the new ownerBusiness continuity decision
Synergy with Bridgestone’s corecompetencies･Polymer composite technology
・Product brand power, Genbutsu-Genba･Global footprint, customer focus

Demonstrate core competence “strength”

Discontinue business → business to be transferred

Study alternative options including withdrawal•••

Aspect of maintaining employment and customer supply
Aspect of continuing and reinforcing the business
Aspect of constant growth of employees

Clear mid term strategy direction

Enhance “strength”, expand solution, accuracy
to achieve the financial disciplines of BridgestoneComprehensive decision
on continuity, discontinuity
7/12

Chemical & Industrial
Products BusinessSports and Cycle
Businesstransfer of anti-vibration rubber and chemical
products solutions business
transfer of Bridgestone Sports Arena

Business portfolio restructuring : Diversified Products Business – approach of business transfer■ Minimize the impact on customers, maintain the employment, pay and benefits of employees associatedwith the business as a base
■ Realize constant growth of employees, continue and reinforce the business by the new owner
Successor

Antivibration
RubberBusiness

ChemicalProductsSolutionsBusiness

Anhui Zhongding Holding (Group) Co., Ltd.
Global company committed to automotive
NVH business including ant-vibration rubber

Fully respecting the management philosophy
and policy of the acquired companies

Company outline(Group company Anhui Zhongding Sealing Parts Co., Ltd.)• Established1980• Listed
Shenzhen Stock Exchange (1998)• Net sales180 B JPY (whole company)• Business domain
anti-vibration rubber, fluid management•
system, sealing, etc.
• Main customers
European, US automotive OEMEndeavour United Co., Ltd.
Domestic investment fund with extensive
investment experience in the manufacturing sector
Fully respecting the management philosophy andpolicy of the invested companies, emphasizing
hands-on support• Established• Investment size
• Project record

2013
About 260 B JPY
66 projects

Regarding the Sports and Cycle Business, the transfer of Bridgestone Sports Arena to Nagase Brothers Inc.
was announced yesterday
8/12Diversified Products Business : Mid Term Business Plan (2021-2023), initiatives towards 2026
Last year of next MBP～2019Stages for theBridgestone Group

2020

2021

Crisis management

2022
Sustainability at the coreRebuild earning power

Transformed“strong” Bridgestone2025

2026“Growth”“strong” Bridgestone as the base

2022

2026

Revenue 260 B JPY
AOP
14 B JPY
ROIC
5.5%

Revenue 280 B JPY
AOP
26 B JPY
ROIC
over 10%Conclude business, footprint
restructuring

Sharply focus on areas where wecan leverage our core competencies

Rebuild earning power• Resource shift to continued business,
strengthen profit structure• Strengthen portfolio management

Expense and cost structure reformation,
Premium business strategy
9/12

2024

Strategic growth investment

Restructure business portfolio
Chemical & Industrial
Products Business:
Decline of profitability2023

Mid & long term growth&Create social value andcustomer value

Diversified Products Business : Initiatives for continued business towards 2026
■ Thoroughly rebuild earning power, sharply focus on areas where we can leverage our core competencies■ 2021: recovered profitability by all business → growth and rapid to be progress maximize the use of core competencies
Business continuity decision
Synergy with Bridgestone’s corecompetencies
Demonstrate core competence“strength”
Clear mid term strategy direction
Enhance “strength”, expand solution,achieve accurate financial disciplines

Continued businessHydraulic, highperformance hose

GlobalRubber track

Global ＋12.9％

Plastic piping

Japan+0.8％

Seismic isolation

Japan+1.8％

Air spring (U.S.)

U.S.

+24.0％

Execute highly efficient investment

10/12＋7.2％

SportsJapan, U.S.

Cycle

Japan(until 2024)-1.3%

Assisted bicycle+19.1%

golf ball, golf club

Strengthen as continued business

Market growth forecast(from 2021 to 2024 based on our assumption)

power assisted bicyclebicycle(until 2024)+1.9％Core competence“Master forming hybrid polymer”
technologyStrong brand power fostered bylong history and track record
Premium product power(high performance, high added value)
Technology proposal capability
based on Genbutsu-Genba andcustomer focus
Global footprint
Bicycle frame design technology

Sustainable“earningpower”

Diversified Products Business : Initiatives for continued business towards 2026
■ Thoroughly rebuild earning power, sharply focus on areas where we can leverage our core competencies■ Growth, rapid progress, challenge → Create new social value and customer value
Continued businessHydraulic, highperformance hose
Rubber track
Plastic piping
Seismic isolation

Core competence“Master forming hybrid polymer”
technology
Strong brand power fostered bylong history and track record
Premium product power(high performance, high added value)

Mid and long term growth, create social value and customer value
Contribute to the spread of hydrogen technology(high pressure durability technology)

Contribute to agriculture, construction industry population decline(respond to agriculture, construction machinery electrification, self-driving)

Provide value to diversifying living environment(expand smart siphon utilization domain)Contribute to sustainable social infrastructure(high damping rubber seismic isolation device)

Air spring (U.S.)

Technology proposal capability
based on Genbutsu-Genba andcustomer focus

Expand into diversifying next generation mobility

Sports (golf ball, golf club)

Global footprint

Provide products, services presenting excitement

Cycle
11/12

power assisted bicycle
bicycleBicycle frame design technology(electric vehicle, heavy load)

Provide safe, secure and comfortable “last one mile mobility”

Diversified Products Business : Towards 2026
■ Maximize the use of core competencies and enhance the profitability of all business, towards “sustainable earning power”■ Create new social value and customer value, towards further growth

Revenue[B JPY]

600

Revenue

572B JPY*
Sports/Cycle

400

2000
Adj. Operating Profit
ROIC
12/12

Diversifiedbusinessin Americas

Restructurebusiness &footprint【Diversified business in Americas】
Transfer building products business*2019 financial data has been adjusted to IFRS basis302,600【Chemical and industrial products】
Transfer anti-vibration rubber, chemical products
solutions business億円
Withdraw from conveyor belt business

243B JPY

260B JPY

25280B JPY

1510

Chemical andindustrialproducts

2019

1.4B JPY*-2052021

10.2B JPY
3.6%

2022

14B JPY
5.5%

2026

26B JPY
Over 10%0Adj.
OperatingProfit[B JPY]

Statements made in this presentation with respect to Bridgestone's current plans, estimates, strategies and beliefs and other statements that are not historical facts areforward-looking statements about the future performance of Bridgestone. Forward-looking statements include, but are not limited to, those statements using words such as"believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "may" or "might" and words of similar meaning in connection with a
discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in othermaterials released to the public. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Bridgestone
cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, andtherefore you should not place undue reliance on them. You also should not rely on any obligation of Bridgestone to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. Bridgestone disclaims any such obligation.

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